- Embattled oil company PetroTal (TAL) has resumed production at its Bretana oil field in Peru after operations were suspended in early August
- The shutdown came off the back of ongoing civil unrest in the region, which culminated in a deadly clash between protestors and police at a nearby pump station in Saramiriza
- Peru’s Central Government has now made an extensive plan to tackle to situation, which focuses primarily on bridging the income gap among poorer indigenous communities
- Production at the Bretana oil field resumed on September 28, and is currently at approximately 11,000 barrels of oil per day
- PetroTal (TAL) is currently steady at C$0.18 per share
Embattled oil company PetroTal (TAL) has resumed production at its Bretana oil field in Peru after operations were suspended in early August.
The region has been in a state of turbulence for several months, brought on largely as a result of public dissatisfaction with the government’s handling of the COVID-19 pandemic.
PetroTal announced on August 10 that it had temporarily shutdown oil production and evacuated its workers after violent clashes between protestors and police, which culminated in dozens of injuries and a number of deaths.
However, the situation seems to have settled after the Central Government unveiled an extensive plan to tackle the social unrest, which PetroTal says is expected to provide a long-term solution.
The first of three announcements was a Supreme Decree, known as the Plan de Cierres de Brechas (PCB), which was signed by the President on August 28.
It establishes an investment plan that focuses on bridging the income gap among poorer indigenous communities, and provides a six-year commitment of roughly C$2.27 billion to support the development of these communities.
Approximately $38 million of this amount will go towards economic stimulation over the next four months.
The second announcement was a Ministerial Resolution, signed by the Prime Minister of September 20. It pertains to the formation of a working group that will decide the projects under the PCB, as well as who will manage them.
Finally, a Decree of Urgency, also signed by the President on September 23, allocates roughly $333 million to a list of infrastructure projects throughout the country. Almost $27 million of this amount has been designated for the Loreto region where the Bretana oil field is located.
PetroTal says that all of its seven wells are now operational, and that production is currently estimated at 11,000 barrels of oil per day.
Manuel Pablo Zuniga-Pflucker, President and CEO of PetroTal, commended the efforts of indigenous communities and the Peruvian government in reaching a negotiated settlement.
“On behalf of PetroTal, I would like to sincerely thank the PetroTal team for their continued dedication during this period and for their contribution towards this long-term community funding solution.
“Our corporate commitment is to ensure all stakeholders benefit from the Bretana project, including the local communities that support our company,” he added.
PetroTal (TAL) is currently steady at C$0.18 per share at 11:37am EDT.
